What Do Economic Indicators Say?
We’ve repeatedly pointed out that there are many indicators which show that the last 5 years have been worse
than the Great Depression of the 1930s, including:
Mark McHugh reports
Velocity of money
is the frequency with which a unit of money is spent on new goods and services. It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling). In a healthy economy, the same dollar is collected as payment and subsequently spent many times over. In a depression, the velocity of money goes catatonic. Velocity of money is calculated by simply dividing GDP by a given money supply. This VoM chart using monetary base should end any discussion of what ”this” is and whether or not anybody should be using the word “recovery” with a straight face:
In just four short years, our “enlightened” policy-makers have slowed money velocity to depths never seen in the Great Depression.
(As we’ve previously explained, the Fed has intentionally squashed
money multipliers and money velocity
as a way to battle inflation. And see this
Indeed, the number of Americans relying on government assistance to obtain basic food
may be higher now that during the Great Depression. The only reason we don’t see
the “soup lines” like we did in the 30s only because of the massive food stamp program.
And while apologists for government and bank policy point to unemployment as being better than during the 1930s, even that claim is debatable
What Do Economists Say?
Indeed, many economists agree that this could be worse than the Great Depression
Bad Policy Has Us Stuck
We are stuck in a depression because the government has done all of the wrong things, and has failed to address the core problems.
- The government is doing everything else wrong. See this and this
Quantitative easing won’t help … it will only make things worse
This isn’t an issue of left versus right … it’s corruption and bad policies which help the super-elite but are causing a depression for the vast majority of the American people.
The government and the banks are doing all of the wrong things. See this